Brazil's ethanol prices fall 5.6% in May as sugarcane harvest boosts supply

In May 2026, Brazil’s hydrated ethanol saw its biggest price decline among monitored fuels, dropping 5.6% to R$ 4.488 per litre. The fall was driven by a larger sugarcane harvest in the Centre‑South region, which increased cane milling and fuel availability.

The Federal District recorded the sharpest regional decline, a 10% fall to R$ 4.528 per litre, while São Paulo, Minas Gerais, Paraná and Mato Grosso also posted notable reductions. Diesel (common and S‑10) fell 3.3% and gasoline (regular and additive) slipped 1% over the same period. By contrast, vehicular natural gas (GNV) was the only fuel to rise, up 0.3%.

The Veloe Fuel Price Monitor, with support from the Instituto de Pesquisas Econômicas (Fipe), noted that despite the May easing, fossil‑fuel prices remain high year‑to‑date, with diesel S‑10 up 16.8% and diesel common up 16.6% in 2026. The larger ethanol supply also improved its competitiveness against gasoline in several states.